Expected PLC Payment Rates for 2019 and 2020 – As of October 12, 2020
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This article contains the latest expected Price Loss Coverage (PLC) Program payment rates for the 2019 and 2020 marketing years as of October 12, 2020.
2019 Marketing Year
The expected PLC payments for the 2019 year are listed in Table 1. These payments are based on the estimated Marketing Year Average Price (MYA Price), which is the national average price received by producers over the marketing year. As the marketing year is either over or close to being over, the estimates will not change much between now and the date for the final MYA Price. The finalized MYA Price for the 2019/20 year will be released in October for Rice. The MYA Price for Corn, Soybeans, Cotton, Peanuts, and Wheat is the finalized price. The Expected PLC Payment Rate is the higher of (Reference Price minus the Estimated 2019/20 MYA Price) or (zero). To find the estimated PLC payment per base acre, multiply the Expected PLC Payment Rate by the individual farm’s PLC Yield, then multiply by the 85% payment reduction factor. Of the crops listed, only Soybeans are expected to not have a PLC payment for the 2019 year.
Table 1. Expected PLC Payment Rates for 2019 Marketing Year - As of October, 2020
| Commodity | Marketing Year | Dates for the Final 2019/20 MYA Price | Unit | 2019 Reference Price | Estimated 2019/20 MYA Price | Expected 2019 PLC Payment Rate |
|---|---|---|---|---|---|---|
| Corn | Sep. 1-Aug. 31 | Sept. 30, 2020 | bu | $3.70 | $3.56 | $0.14 |
| Soybeans | Sep. 1-Aug. 31 | Sept. 30, 2020 | bu | $8.40 | $8.57 | $0.00 |
| Seed Cotton | Aug. 1-Jul. 31 | Sept. 30, 2020 | lb | $0.3670 | $0.3058 | $0.0612 |
| Rice (long grain) | Aug. 1-Jul. 31 | Oct. 30, 2020 | lb | $0.1400 | $0.1200 | $0.02 |
| Rice (med/short grain) | Aug. 1-Jul. 31 | Oct. 30, 2020 | lb | $0.1400 | $0.1160 | $0.024 |
| Peanuts | Aug. 1-Jul. 31 | Aug. 28, 2020 | lb | $0.2675 | $0.2050 | $0.0625 |
| Wheat | Jun. 1-May 31 | Aug. 28, 2020 | bu | $5.50 | $4.58 | $0.92 |
2020 Marketing Year
The expected PLC payments for the 2020 year listed in Table 2. The Estimated 2020/21 MYA Price is based on prices from the October USDA WASDE report and the September Oil Crops Outlook Report. These numbers are subject to change significantly between now and next fall as conditions change. Similar to 2019, only Soybeans are expected to not have a PLC payment for the 2020 year. Corn, Soybeans, Cotton, and Wheat prices are expected to be higher in 2020 compared to 2019. The MYA Price is estimated to be lower in 2020 for Rice and Peanuts. Thus, only Rice and Peanuts are estimated to have higher payments in 2020 compared to 2019.
Table 2. Expected PLC Payment Rates for 2020 Marketing Year - As of October, 2020
| Commodity | Marketing Year | Dates for the Final 2020/21 MYA Price | Unit | 2020/21 Reference Price | Estimated 2020/21 MYA Price | Expected 2020 PLC Payment Rate |
|---|---|---|---|---|---|---|
| Corn | Sep. 1-Aug. 31 | Sept. 2021 | bu | $3.70 | $3.60 | $0.10 |
| Soybeans | Sep. 1-Aug. 31 | Sept. 2021 | bu | $8.40 | $9.80 | $0.00 |
| Seed Cotton | Aug. 1-Jul. 31 | Sept. 2021 | lb | $0.3670 | $0.3184 | $0.0495 |
| Rice (long grain) | Aug. 1-Jul. 31 | Oct. 2021 | lb | $0.1400 | $0.1150 | $0.025 |
| Rice (med/short grain) | Aug. 1-Jul. 31 | Oct. 2021 | lb | $0.1400 | $0.1160 | $0.024 |
| Peanuts | Aug. 1-Jul. 31 | Aug. 2021 | lb | $0.2675 | $0.1975 | $0.07 |
| Wheat | Jun. 1-May 31 | Aug. 2021 | bu | $5.50 | $4.70 | $0.80 |
Any questions on this material can be directed to:
Brian Mills – b.mills@msstate.edu – (662) 686-3238
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